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Legacy Iron Ore Ltd (AU:LCY)
ASX:LCY
Australian Market

Legacy Iron Ore Ltd (LCY) AI Stock Analysis

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AU

Legacy Iron Ore Ltd

(Sydney:LCY)

Rating:39Underperform
Price Target:
Legacy Iron Ore Ltd has shown strong revenue growth, but this is offset by significant operational losses and negative cash flows, resulting in a low financial performance score. The technical analysis suggests neutral to bearish signals, while a negative P/E ratio and lack of dividend yield present valuation challenges. These factors collectively contribute to a low overall stock score.

Legacy Iron Ore Ltd (LCY) vs. iShares MSCI Australia ETF (EWA)

Legacy Iron Ore Ltd Business Overview & Revenue Model

Company DescriptionLegacy Iron Ore Ltd (LCY) is an Australia-based exploration company focused on the development of iron ore, gold, base metals, and other mineral resources. Operating primarily in Western Australia, the company aims to identify and develop mining projects with significant economic potential. Legacy Iron Ore's core activities include exploration, project development, and the strategic management of its mineral assets to create value for its stakeholders.
How the Company Makes MoneyLegacy Iron Ore Ltd generates revenue primarily through the exploration and development of mineral resources. The company aims to capitalize on its mineral assets by advancing projects from the exploration phase to production, either independently or through partnerships and joint ventures. Key revenue streams include the sale of extracted minerals, such as iron ore and gold, and potential royalties from joint venture agreements with other mining companies. Additionally, Legacy Iron Ore may engage in strategic partnerships or sell stakes in its projects to generate funding and share project risks, contributing to its overall earnings.

Legacy Iron Ore Ltd Financial Statement Overview

Summary
Legacy Iron Ore Ltd is experiencing rapid revenue growth, but this is overshadowed by significant operational losses and negative cash flows. The company's low leverage and strong equity position are positives, but the persistent losses and cash burn pose risks. The focus should be on managing operational efficiency and cash flow to improve financial health.
Income Statement
30
Negative
Legacy Iron Ore Ltd has shown a significant increase in revenue from $50,000 in 2023 to $2,083,003 in 2024, indicating substantial growth. However, the company continues to incur heavy losses with a negative EBIT and net income, resulting in negative profit margins. The gross profit margin is positive, but the net profit and EBIT margins are significantly negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The balance sheet of Legacy Iron Ore Ltd reflects a strong equity position with a debt-to-equity ratio of 0.0014, indicating low leverage. The equity ratio is high at 73.9%, suggesting a stable financial foundation. However, the company has limited total debt, which is a sign of minimal financial risk but also limits financial leverage.
Cash Flow
40
Negative
The cash flow situation is concerning, with negative operating and free cash flows indicating cash burn. The free cash flow to net income ratio is negative due to negative free cash flow, highlighting cash management issues. While the company raised significant cash through financing activities, it continues to spend more than it generates.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
28.87M2.08M50.00K0.000.0086.25K
Gross Profit
25.49M2.08M-11.16K-82.50K-51.75K61.35K
EBIT
-26.92M-11.76M2.01M-1.01M-688.25K-886.72K
EBITDA
-24.62M-9.53M2.07M-923.10K-636.50K-861.83K
Net Income Common Stockholders
-28.03M-9.59M2.01M-1.01M-951.40K-959.93K
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.74M15.26M9.74M7.51M10.34M9.21M
Total Assets
15.55M47.22M25.61M23.61M24.21M22.24M
Total Debt
0.0049.77K82.29K24.00K69.62K132.15K
Net Debt
-6.35M-11.33M-2.64M-466.83K-9.64M-9.08M
Total Liabilities
219.81K12.31M288.79K290.53K322.43K316.56K
Stockholders Equity
15.33M34.90M25.32M23.32M23.89M21.93M
Cash FlowFree Cash Flow
-23.55M-13.50M579.48K-2.33M-2.80M-1.76M
Operating Cash Flow
-17.77M-9.95M2.01M82.50K-648.49K-964.58K
Investing Cash Flow
-2.08M1.83M3.79M-8.30M-1.80M-710.02K
Financing Cash Flow
16.78M16.78M-41.24K-45.61K2.94M9.45M

Legacy Iron Ore Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.01
Negative
100DMA
0.01
Negative
200DMA
0.01
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.47
Neutral
STOCH
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LCY, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LCY.

Legacy Iron Ore Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFMG
76
Outperform
$48.16B8.1420.21%8.68%-11.33%-32.11%
AURIO
74
Outperform
$154.48B10.1621.04%8.19%-0.10%15.50%
AUBHP
72
Outperform
AU$194.01B11.2226.20%5.16%-2.47%57.01%
AUCIA
61
Neutral
AU$2.36B14.6310.03%5.00%-9.27%-56.88%
AUMGX
61
Neutral
$324.38M56.60-35.86%-39.92%-249.60%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
AULCY
39
Underperform
AU$79.34M-87.55%-2000.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LCY
Legacy Iron Ore Ltd
0.01
0.00
0.00%
AU:CIA
Champion Iron
4.42
-1.96
-30.71%
AU:BHP
BHP Group Ltd
38.23
-3.43
-8.23%
AU:FMG
Fortescue Metals Group Ltd
15.65
-6.14
-28.18%
AU:MGX
Mount Gibson Iron Limited
0.28
-0.13
-32.93%
AU:RIO
Rio Tinto Limited
109.60
-6.83
-5.87%

Legacy Iron Ore Ltd Corporate Events

Legacy Iron Ore Reports Significant Progress in Key Projects
Apr 28, 2025

Legacy Iron Ore Limited reported notable progress in its South Laverton Project, with successful ore sales and a new Right to Mine Agreement with Bain Global Resources, promising shared profits from mining activities. Encouraging drilling results at the Blue Peter deposit indicate significant gold mineralization, enhancing the company’s resource potential. Additionally, the Mount Bevan Project saw advancements with a mining lease application and infrastructure plans, reinforcing Legacy Iron’s strategic growth in the mining sector.

Legacy Iron Ore Reports Cash Flow Results for March 2025 Quarter
Apr 28, 2025

Legacy Iron Ore Ltd reported a net cash outflow from operating activities of $1.97 million for the quarter ending March 31, 2025, driven by significant production costs. The company also experienced a net cash outflow from investing activities totaling $2.815 million, primarily due to expenditures on exploration and evaluation assets. Despite these outflows, the company had previously secured $22.216 million from financing activities over the past year, which has bolstered its cash reserves.

Legacy Iron Ore Announces Revised Resource Estimates for Mt Celia Project
Apr 3, 2025

Legacy Iron Ore Ltd has announced revised mineral resource estimates for its Mt Celia Gold Project, showing a total of 4.30 million tonnes at 1.84 g/t for 255,200 ounces, with a 27% increase in grade. The revision indicates a 46% decrease in the total contained gold in the Measured and Indicated category due to mining depletion. The company sees significant potential for further development and new discoveries within the project, with mineralization open at depth and potential for underground mining at Blue Peter deposits. These developments are expected to enhance the economic potential of the Mt Celia project and support Legacy Iron’s growth strategy.

Legacy Iron Ore Announces Revised Resource Estimates for Mt Celia Gold Project
Apr 2, 2025

Legacy Iron Ore Ltd has announced revised mineral resource estimates for its Mt Celia Gold Project, showing a total mineral resource of 4.30 million tonnes at 1.84 g/t for 255,200 ounces, with a 27% increase in grade. The company highlights that 46% of the resource is in the Measured and Indicated category, with significant potential for further development and discovery of new mineralization. The updated estimates support the economic potential of the Mt Celia project and suggest future opportunities for underground mining, particularly in the Blue Peter deposits. The company remains focused on extending existing mineralization and discovering new resources within the project area.

Legacy Iron Ore Partners with Bain Global Resources for Mt. Celia Gold Project
Mar 9, 2025

Legacy Iron Ore Ltd has entered into a Right to Mine Agreement with Bain Global Resources for the Mt. Celia gold mining operations. Under this agreement, Bain Global Resources will finance up to $10 million of mining activities, with profits shared between the two companies. Initially, Legacy will receive 75% of the net profits until it recovers $20 million, after which profits will be split equally. This strategic partnership is expected to enhance operational efficiencies and extend the operational life of the Mt. Celia project, leveraging high gold prices to maximize the mine’s potential and shareholder value.

Legacy Iron Ore Reports Promising Gold Intersections at Mt Celia
Mar 2, 2025

Legacy Iron Ore Limited has announced promising results from its recent drilling program at the Mt Celia Gold Operation, with significant gold mineralisation intersected in 11 out of 27 holes drilled north of the Blue Peter 2 pit. These results, which include high-grade intersections, suggest potential for further exploration and development, enhancing the company’s prospects in the gold mining sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.